Global Fashion Group Raises EUR 300 million in Funding Round
27 APRIL 2016, BERLIN
Summary• Rocket Internet SE (“Rocket Internet”) has committed to invest up to EUR 100 million of the EUR 300 million capital increase (the “Financing”) of Global Fashion Group S.A. (“GFG”) // • Rocket Internet expects to invest up to EUR 85 million including the conversion of an existing investment // • GFG with continued strong operating performance in Q1 2016 and a significant improvement of the Adjusted EBITDA margin by over 10 percentage points compared to Q1 2015
Berlin, Germany, April 27, 2016 – Today, GFG has secured a successful funding round of at least EUR 300 million, which has been underwritten by Rocket Internet and other existing shareholders. Founded in 2014, GFG is the leading online Fashion business in emerging markets. It combines 6 regional brands, Dafiti in Latin America, Lamoda in Russia and CIS, Namshi in the Middle East, The Iconic in Australia, Jabong in India and Zalora in South-East Asia.
As part of the transaction, Rocket Internet has agreed to underwrite up to EUR 100 million of the Financing. Rocket Internet expects to invest up to EUR 85 million including the conversion of an existing investment at the terms of the Financing. The transaction values GFG at EUR 1.0 billion post the transactions.
Oliver Samwer, CEO of Rocket Internet, commented: “We continue to be very excited about the prospects of GFG, which has successfully built out leading market positions in key emerging markets. We are looking forward to continuing to work with the GFG team as well as Kinnevik and the other GFG shareholders to support GFG.”
Romain Voog, CEO of GFG added: “We very much appreciate the continued support of our key existing investors in GFG. The financing will provide GFG with the necessary capital to continue to execute its strategy of building out its leading position in the online fashion sector in emerging markets. During the first quarter 2016 we have made significant progress on our path to profitability, reducing the loss from operations meaningfully in comparison to the first quarter 2015 resulting in an improvement of the Adjusted EBITDA margin by over 10 percentage points year-over-year. This is in line with GFG’s plan to deliver an accelerated path to profitability across its regional businesses while continuing to capture the significant market opportunity available.”
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About Rocket Internet
Rocket Internet builds and invests in Internet companies that take proven online business models to new, fast-growing markets. Rocket Internet focuses on five industry sectors of online and mobile retail services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise, Home & Living and Travel. Its network of companies operates a variety of business models in over 110 countries on six continents with more than 36,000 employees at the end of 2015. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information please visit www.rocket-internet.com.
This document contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Rocket Internet SE ("Rocket Internet") and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations and competition from other companies, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, and other factors. Rocket Internet does not assume any obligations to update any forward-looking statements.
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About Rocket Internet
About Rocket Internet
Rocket Internet incubates and invests in Internet companies with proven business models. It provides operational support to its companies and helps them scale internationally. Rocket Internet focuses predominantly on four industry sectors of online and mobile retail and services that make up a significant share of consumer spending: Food & Groceries, Fashion, General Merchandise and Home & Living. Rocket Internet’s selected companies are active in a large number of countries around the world with more than 28,000 employees. Rocket Internet SE is listed on the Frankfurt Stock Exchange (ISIN DE000A12UKK6, RKET). For further information please visit www.rocket-internet.com.